Hi,
I can claim 0.78 cents per kilometre travelled when using my car for work with my employer, who reimburses me (which is the same as the ATO set rate for FY 2022-2023). From what I understand, any amount my employer reimburses me for using my car under $5'000 total for the FY is untaxed. When filing my tax return with MyTax, I noticed that the amount I was reimbursed for travel (~$3500) was listed under "Total allowances including commissions, director's fees, bonuses, tips or consultation fees etc." despite listed on my EOFY payment summary as "Untaxed Cents per kilometre". I amended this amount to zero and submitted my tax return. When I received my notice of assessment, the ATO made an adjustment to my assessment and re-added \ the amount under "Income from Allowances, earnings, tips, director's fees etc.", consequently increasing my tax payable for the last FY.
Have I misunderstood something and kilometers reimbursed by my employer ARE taxed, or has a mistake been made and the amount has been incorrectly categorised as income rather than untaxed kilometers.
Any advice and help would be appreciated!
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